Grow your business with the funding it needs with small business loans. Know about SME Loans, its various types, benefits, providers etc.

1. Loans for Small & Medium Business

2.  About SME Loans
 Types of SME Loan
 Loan Process
 Interest Rates
 Eligibility Criteria
 Documents Required
 Features & Benefits
 SME Companies

3.  SME finance is the funding of small and medium sized enterprises
 A loan specially designed to meet the business needs
Image source: http://magma.co.in/wp-content/uploads/2014/01/SME-loan-960x320.jpg

4.  SME plays important role by contributing 45% of industrial output &
1.3 million jobs every year
 Definitions of micro, small and medium enterprises as per there
investment in plant and machinery as follow:
Enterprises Manufacture or Product Service
Micro Upto Rs. 25 lakh Upto Rs.10 lakh
Small Rs. 25 lakh to 5 crore Rs. 10 lakh to 2 crore
Medium Rs. 5 crore to 10 crore Rs. 2 crore to 5 crore

5. Application
Processing
Documentation
Sanctioning of the
Loan
Disbursement

7.  Working capital:
• To bridge the working capital gap & foster growth of businesses
 Business Expansion:
• For expansion of manufacturing facilities
• Increasing product lines
• Geographical expansion
• Technology upgrades etc.
 Margin Money Funding:
• Margin money required for machinery purchase/LC/BG
Source: http://magma.co.in/loans/sme-loans/

8. Bank Name Interest Rate Processing Fee Loan Amount
HDFC Bank 17% - 22% 2% - 2.5% 75K - 15 Lacs
ING Vysya Bank 15.25% - 19.25% 2% - 2.5% 2 Lacs - 20 Lacs
Magma Fincorp 16.5% 3% Upto 2 Crore
Bajaj Finserv 19% - 20% 2% 1 Lac – 45 Lacs
ICICI Bank 15% - 19% 2% - 2.5% 2 Lacs - 25 Lacs
Fullerton India 21% - 28% 2% - 3% 1 Lac - 20 Lacs
Source: http://www.deal4loans.com/apply-business-loans.php

9.  Age Between 21 to 65 years
 Turnover of the business
 Profit of the business
 Cash flow of the business
 Track record and type of business
 Professionals with stable income & business

10.  Proofs of age, address & signature
 Bank statements- past 6 months
 Financial statements- last 3 years
 IT returns- last two years
 Ownership Proof of Residence or Office
 Incorporation documents
 Tax receipts for the current year turnover

11.  Tax Benefits as per applicable laws
 Hassle-free loans
 No security/collateral required
 Repay with easy EMIs
 Simple procedure
 Minimal documentation
 Quick approval
 Higher loan tenure
 Flexibility of loan tenure